Subscription monetization & transition to XaaS: SAP BRIM
faster business model innovation with greater flexibility for introducing new offers*
* SAP performance benchmarking
In the dynamic landscape of companies evolving from product-centric to service-oriented models, the challenges are paramount. Embracing subscription-based businesses requires not just innovation but a swift market entry, agile pricing adaptations, and management of recurring and usage-based revenue. SAP® Billing and Revenue Innovation Management solutions provide a comprehensive platform for monetizing products, services, and subscriptions that meet customer demands for flexibility, value and personalization while staying ahead of market disruptions.
Objectives
Gain business agility by offering subscription, usage, and other recurring revenue models with unlimited pricing and flexible payment options and the ability to bundle products, services and subscriptions.
Optimize customer experiences, minimize revenue leakage, and maintain compliance with order-to-cash automation.
Scale for growth and complexity with high-performance scalability, localization for multiple countries, and preintegrated modules.
reduction in customer support calls with simplified, transparent invoicing*
* SAP performance benchmarking
Key Benefits
Meet customer needs with a variety of subscription and recurring revenue models that can be updated anytime
Maintain ongoing financial compliance with automated revenue accounting
Manage growth with the scalability to manage millions of transactions
Gain operational efficiencies with comprehensive automation
Benefits For Business Owners
- Business users design subscription pricing, usage-pricing and bundling through configuration, not code
- Allocate fees and credits to multiple financial accounts: prepaid, postpaid, hybrid
- Innovate your offers with credit, quota and entitlement pooling across multiple enterprise employees, seats or devices
- Interlink partner revenue share terms
- Handle partner contract terms with just as much flexibility as customer pricing and using the same toolset and skills
- Interlink customer pricing with partner revenue share and commissioning agreements to correctly model your business
- Tailor your offers to partners by allowing special incentives for your most valuable partners while still maintaining the overall manageability of your pricing catalog
- Rationalize your infrastructure by calculating and settling amounts due to partners through the same rating and billing solution as for customer transactions
- Gain partner loyalty and trust with full transparency for partners through customizable detailed reporting and prompt payments
- SAP CX Billing allows service providers to produce a single customer bill across multiple lines of business.
- This leads to immediate, direct savings in printing, mailing and bill presentment costs. More importantly, a well-designed bill can significantly reduce billing-related customer inquiries, contributing savings to the bottom line.
- Newly designed offers, pricing and agreements are instantly available for quoting and ordering across all channels
- Order capture and change management handles the complexity of dynamically bundled service packages to ensure that what is ordered can be delivered and billed
- Customers gain service control with real-time visibility into their spending and allowance status
Benefits For CFO
- Automate payment handling from any channel
- Continuously evaluate credit risk and run efficient collections for lower DSO
- Handle customer inquiries and disputes promptly to ensure prompt payment
- Provide customers with payment choices: credit cards, checks, internal or external cash desks, and bank transfers with electronic data interchange and SEPA support
- Automate payment reconciliation with adaptable clearing strategies and streamlined payment clarification
- Prevent delays in cash flow and allow early detection of delinquency
- Segment customers according to credit risk and continuously monitor payment behavior during the entire customer lifecycle
- Use credit scoring to make decisions on whether to extend service to customers and what credit limits to manage with them
- Reduce DSO and lower bad-debt write-offs by optimizing tailored collections strategies through integrated analytics and Champion Challenger analysis
- Post and recognize revenues with confidence
- Aid compliance with rules for revenue recognition, tax reporting, PCI-DSS and SEPA
- Properly account for prepaid accounts and allowances and their associated refill and closing activities
- Operate globally in complex multi-currency, multi-country businesses
Benefits For CIO
- Solution proven to scale from small trials up to handling multi-billion dollar businesses
- Modular and open to give you choice, leverage your existing investments and ensure rapid time to value
- Packaged in rapid deployment solutions with industry best-practices
- Manage high-volume, multi-source transactional data for billing, fraud and business intelligence
- Filter, transform, correlate, route
- Operates in real-time with bi-directional interfaces or in batch
- Intuitive drag-and-drop GUI for configuration
- Vast library of standard interfaces and protocols
- Calculate usage-based fees and subscription charges for customers and partners
- Maintain allowances (quotas and entitlements) for individual customers and pooled units for enterprises with concurrent access
- Manage configuration chronologies to handle late arrival of usage data and go-live scheduling
- Operate in real-time or batch with massive dynamic scalability and 99.999% high availability
- All mass processes run automatically and unattended
- Business users involved only when required, e.g., checking pro forma invoices
- Error correction and reversal processes included to handle outages or configuration errors
- Included access control and audit mechanisms
Transform your business with Innovative Revenue Models
Win customers and grow market share with innovative monetization of products, services and subscriptions. SAP BRIM solutions provide comprehensive software that helps you quickly monetize products, services or subscriptions.
With BRIM, you can differentiate your subscription business by combining subscriptions, usage, one-time, bundles, and other models with multiple pricing and payment options. Your business will gain speed to market by automating relevant downstream billing processes when you create new offerings or update existing ones.
In addition, comprehensive order-to-cash automation that optimizes the customer experience, minimizes revenue leakage, and maintains financial compliance helps achieve accuracy and compliance. Invest in software that offers a broad range of monetization options, high-performance scalability, localization for multiple countries, and preintegrated modules that can be quickly implemented.
Collect, enrich, and Verify Billing Data
Billing of usage- and outcome-based plans typically requires data to be collected from multiple systems. SAP Convergent Mediation can collect data without the need to make any changes in the originating system, including third-party and legacy systems.
To make the data usable for billing, SAP Convergent Mediation can automatically enrich, aggregate, correlate, and split data. The solution can also verify data quality by applying error-detection rules, removing duplicates, and correcting data for accurate billing. With automated data collection, enrichment, and verification, you can quickly launch new subscription plans while preventing revenue leakage. As your business grows, SAP Convergent Mediation provides the scalability to handle the highest volumes of data in real time.
Realize the benefits of Accelerated Monetization
SAP Billing and Revenue Innovation Management provides a modular suite of solutions that can help you quickly and easily monetize products and services. With these solutions, you can:
- Offer any combination of subscription, usage, or outcome-based plans using unlimited pricing and flexible payment options
- Create innovative bundles of products, services, and subscriptions to increase customer stickiness and differentiate from competitors
- Rapidly respond to market changes by automating downstream processes, such as usage data collection, fulfillment, and contract management
- Create partner revenue-share models with automated revenue-share calculation, tracking, and settlement
- Unify the order-to-cash process across offerings to prevent revenue leakage and to deliver accurate and timely orders and bills to customers
- Give customers the flexibility to make any changes to their subscription plans with real-time updates to billing
- Maintain ongoing financial compliance with automated revenue recognition and reporting
- Invest in a scalable and modular platform in which preintegrated modules can be quickly implemented
- Manage growth and complexity with high- performance capabilities and scalability to manage millions of transactions
Manage subscriptions with Maximum Flexibility
The subscription order management component available in SAP Billing and Revenue Innovation Management offers comprehensive management of the subscription lifecycle with maximum flexibility in monetizing subscriptions, usage, and revenue-sharing models.
Use the subscription order management component to:
- Create subscription-based products with flexible rate plans that can include recurring, one-time, and pay-per-use fees
- Manage the subscription lifecycle including contract renewals, upgrades, extensions, and cancellations
- Support real-time changes by customers in which adding, modifying, removing, or switching products are immediately updated in billing
- Select from unlimited pricing models, such as fixed amount, block price, tiered or volume price, and percentage-based price
- Offer different payment options, such as in-advance, in-arrears, installment, and buy now, pay later
- Calculate charges, credits, and discounts in near-real time
- Gain a comprehensive view of customer activities, interactions, and contract histories with a detailed audit trail
- Create bundled offerings that combine physical products, online services, project hours, on-site services, and subscriptions with orchestrated fulfillment
Manage pricing and Revenue Sharing
Define and apply the right prices to products and services.
With the solution, you can:
- Enable business users to design and maintain complex pricing logic that can include usage- based, recurring, and nonrecurring fees in addition to prices based on time, volume, or zones
- Simulate pricing and profit scenarios to optimize price structures and strategies
- Support billing that can be done in advance, in arrears, or a combination of both
- Calculate usage fees and subscription charges in real time or in batch mode with the scalability to handle high volumes of customers and transactions
- Develop partner revenue-sharing models with automatic calculation and tracking of revenue- share amounts
- Track and manage account balances in real time across single or multiple accounts or contracts
- Offer spending controls to customers on a per-service basis
- Identify revenue leakage by tracking and analyzing data that is transferred from charging to billing
Create accurate, Easy-to-Read Invoices
Automate billing and invoicing by consolidating information from multiple sources to create accurate invoices for customers.
Use SAP Convergent Invoicing to:
- Combine and aggregate data from multiple sources, including third-party systems, into a single billing stream
- Support one-time, recurring, and usage-based charges that can be billed in advance, in arrears, or a combination of both
- Create unified, easy-to-read invoices for customers and revenue-share statements for partners with relevant details included
- Offer invoice-level discounting based on an amount, percentage, or rules
- Handle high volumes of transactions, customers, and invoices with error correction and reversal processes to handle outages
- Manage billing cycles with the ability to create on-demand and preliminary invoices
